-- Posted Tuesday, 26 June 2012 | | Disqus
Gold Today – Gold closed in New York at $1,583. London opened at the same level, while the euro strengthened slightly to €1: $1.2508 and lifted gold higher. The gold Fix was set at $1,583.25 $13 higher and in the euro €1,267.411, €11 higher. Ahead of New York’s opening gold stood at $1,585.25 and in the euro, €1,266.93 while the euro was at €1: $1.2512.
Silver Today – Silver held at lower levels in line with gold to trade in London at $26.77. Ahead of New York’s opening at $26.82.
Gold (very short-term)
Gold will continue an important phase of its consolidation, today in New York.
Silver (very short-term)
Silver will continue an important phase of its consolidation, today in New York.
Price Drivers
Gold & Silver – As we thought, the foreign exchange markets were unimpressed by the Rupee strengthening measures taken by the Reserve Bank of India as it has remained unchanged overnight and well into London’s morning. It seems structural adjustments to the Indian economy need to be made to achieve that. Short term measures such as these won’t work as we see in the Rupee’s moves in the last day. We wait to see if the Indian government has the drive to change many facets of their economy and government so as to change that. We don’t have high expectations. Will these include measures against importing gold?
We don’t expect to see good Indian demand now until after the monsoon is finished and harvesting in progress around the middle of August. At that time, we expect them to have realized that Rupee prices of gold, at these levels, are sure evidence of the weakness of their currency and an incentive to buy gold and silver, their only escape from the Rupee.
Back in the Eurozone, Spain has officially asked for help as 28 banks are downgraded including their strongest banks. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]. We cannot see that the Eurozone crisis is moving towards a resolution. The news just seems to get worse in slow motion.
The overall opinion of the precious metal markets is that gold, when set against these backgrounds, should rise higher. It is still consolidating though and not yet making decisive moves either way. Throwing money at falling asset holders is no replacement for real economic [not monetary] growth. If they continue to do that, the crisis will worsen!
Silver - rose more vigorously over the last day too rising behind gold to reach $27.42 a good 2% higher [60 cents]. Being a professional, American driven investment medium, silver will always follow gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,515.50 | Sf1,509.61 |
US | $1,585.25 | $1,570.30 |
EU | 1,266.93 | €1,257.25 |
India | Rs.90,240.36 | Rs.89,483.55 |
-- Posted Tuesday, 26 June 2012 | Digg This Article
| Source: GoldSeek.com
